Supply of properties for sale fell significantly in London in August

The number of newly listed properties fell across the UK in August, the third month in a row that the residential housing market has seen a decline in supply, new research shows.

Overall supply fell by 6.9% in August versus July in 100 major towns and cities across the nation analysed in the property supply index published on a monthly basis by online estate agent HouseSimple.

The data also shows that new supply fell by 17.1% in London, more than double the UK average, and every borough in the capital city saw fewer new properties listed month on month.

The largest fall in new supply was in King’s Lynn, down 36.4%, followed by a decline of 31.7% in Rugby, a fall of 26.7% in Sale, down 24.5% in Inverness, down 23% in Falmouth, down 21.3% in Cambridge, a fall of 17.9% in Poole, down 16.9% in Dundee and down 16.2% in Guildford.

The biggest rise in new supply was recorded in Stoke on Trent, up 43.8%, followed by a rise of 40% in Lichfield, a rise of 35% in Barnsley, up 32.1% in Oldham, up 29.7% in Lincoln, up 24.6% in Chelmsford, a rise of 23.2% in Chichester and a rise of 19.7% in Perth.

The figures also show that new supply has now fallen almost 30% in London from its high in June. The boroughs of Barnet and Haringey saw the largest drop in new property listings, down 30.4% in August while Barking and Dagenham saw the smallest fall in new listings, down just 1.2%.

According to Sam Mitchell, HouseSimple chief executive officer, the summer may be partly responsible for supply falling off.

He said:

‘Now we are entering one of the traditionally busy periods for the property market we would expect to see a significant increase in new listings in September and October.’